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#117 12-03-79 Order Improvements RSL 99Resolution #117 November 27, 1979 Member Thorsen introduced and read the written resolution and moved its adoption: RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUA14T TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (the "Act") as found and determined by the leg- islature, is to promote the welfare of the state by the active attraction and en- couragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of econom- ically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an andequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Golden Valley (the "City") has received from The Northland Company, a corporation, organized under the laws of the State of Minnesota'(the "Borrower"), a proposal that the City undertake to finance a Project hereinafter described, through the issuance of Revenue Bonds (which may be in the form of a single debt instrument such as a Note) pursuant to the Act; (d) The City desires to facilitate the selective development of the community, retain and improve its tax base and help it provide the range of services and employment opportunities required by its population; and said Project will assist the City in achieving those objectives. Said Project will help to increased assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the City; (e) The project to be financed by the Note is a business office facility to be located in the City of Golden Valley at the southeast corner of Golden Valley Road and Rhode Island Avenue, just north of Country Club Drive and west of Pennsyl- vania Avenue, and consists of the acquisition of land and the construction of an office building and other improvements comprising 40,000 square feet and the in- stallation of equipment therein, and will result in the employment of additional persons to work within the new facilities. Said Project will be leased to a number of tenants who will utilize the facility for business office purposes. Resolution #117 (continued) (f) The City has been advised by the Borrower that conventional, com- mercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Porject would be significantly reduced, but the Borrower has also advised this Council that with the aid of municipal financing, and its re- sulting low borrowing cost, the Project is economically more feasible. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Golden Valley, Minnesota as follows: 1. The Council hereby gives preliminary approval to the proposal of the Borrower that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the ac- quisition, construction and equipping of facilities within the City pursuant to the Borrower's specifications suitable for the operations described above and gives pre- liminary approval to a revenue agreement between the City and the Borrower upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the proposed Revenue Bonds in the total principal amount of approximately $2,000,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of said Project; and the City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions; 2. On the basis of information available to this Council it appears, and the Council hereby finds, that said Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises en- gaged in any business within the meaning of Subdivision la of Section 474.02 of the Act, that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to the Borrower to under- take the Project, and that the effect of the Project, if undertaken, will be to en- courage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve its tax base and provide the range of services and employment opportunities required by its population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to pro- mote more intensive development and use of land within the City and to eventually increase the City's tax base; 3. Said Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Securities, and subject to final approval by this Council, Borrower, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project; 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Securities, requesting his ap- proval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require; 5. The City's legal counsel and bond counsel are authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the Borrower and the purchaser of the Revenue Bonds as to the matur- ities, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; Resolution #117 (continued) 6. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proeceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding princi;al on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limiation; 7. Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the Com- missioner will be paid by Borrower; Borrower has submitted with this application a deposit in the amount of Fifteen Hundred Dollars ($1,500.00) to be utilized by the City if necessary, to defray costs incurred by the City in connection with this proposal. 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Revenue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, Borrower is hereby authorized to make such expenditures and advances toward pay- ment of that portion of the costs of the Project to be financed from the proceeds of the Revenue Bonds as borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City. Adopted by the City Council of the City of Golden;V161ley, Minneosta this 27th day of November, 1979• 1__1ZWL- ROBERT R. HOOVER, MAYOR ATTEST: JOHN MURPHY, JITY CLERK The motion for the adoption of the foregoing resolution was duly seconded by Member Johnson and upon vote being taken thereon, the following members voted in favor thereof: Hoover, Johnson and Thorsen and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the Clerk.